What are the four support activities mentioned by Porter?

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 Michael Porter's Value Chain Model outlines four primary support activities that enhance the efficiency and effectiveness of an organization’s primary activities. These support activities indirectly contribute to the creation of value by ensuring that the primary activities (like operations, marketing, and sales) function smoothly. The four support activities are:

1. Firm Infrastructure

This refers to the organizational structure and systems that support the entire value chain. It includes general management, legal, finance, planning, and quality management.

  • Role: Ensures effective planning, decision-making, and control of the organization’s resources.
  • Example: Strategic planning to allocate resources for a new product launch.

2. Human Resource Management (HRM)

HRM involves recruiting, training, developing, and retaining employees to support the organization’s activities.

  • Role: Provides the skilled workforce required for all other activities in the value chain.
  • Example: Employee training programs to improve productivity in production processes.

3. Technology Development

This encompasses the activities that contribute to product and process innovation, including research and development (R&D), design, and the application of technology in operations.

  • Role: Improves operational efficiency and enhances product quality.
  • Example: Developing new software tools to optimize supply chain management.

4. Procurement

Procurement involves the sourcing of inputs, such as raw materials, equipment, and services, necessary for the organization to carry out its activities.

  • Role: Ensures that resources are acquired cost-effectively and meet quality standards.
  • Example: Negotiating contracts with suppliers for high-quality components at competitive prices.

Integration with Primary Activities

These support activities strengthen the primary activities—such as inbound logistics, operations, marketing, and customer service—leading to the creation of competitive advantages, whether through cost reduction, differentiation, or innovation.

For example:

  • Technology development in a company like Apple supports product design (a primary activity) to create high-quality, innovative products.
  • Effective procurement ensures that a retailer like Walmart maintains its cost leadership by sourcing goods efficiently.

By optimizing these support activities, firms can enhance value across the entire value chain.

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